Katy Y. Chen, executive director of People Attentive to Children (PATCH), did not let these challenges stand in the organization’s way. In fact, over the past five years, PATCH’s revenues have grown by 40 percent to about $3 million annually, allowing it to further its mission of serving Hawaii children through early childhood education and child care.

Generating surplus revenues was not easy, but through financial discipline Chen has been able to do more than just cover the full cost of doing business.

“By maintaining liquid net assets equivalent of five months of expenses, PATCH has the working capital necessary to sustain business fluctations and strategically plan for its long-term impact,” a colleague said.

Chen also has focused on the organization’s employees. Her commitment to teamwork and staff development through clear and focused goals has allowed employees throughout the organization to thrive.

In addition to being a leader in the workplace, Chen is also a leader in the community. She is a Pono Fellow of the Hawaii Community Foundation, commissioner of the City and County of Honolulu Ethics Commision, a board member for the Hawaii Book & Music Festival and a Pacific Century Fellow.

The biggest challenge facing my organization and how I’m addressing it: Over 90 percent of PATCH’s funding comes from government contracts, and we have been hit with large budget cuts due to the recession. PATCH has done everything we can to save money, reduce costs and diversify our income, without laying off staff, which is our primary asset. We are now developing new funding streams and creating a cultural shift within our staff and board toward more fund development.

The biggest opportunity facing my organization and how I’m taking advantage of it: PATCH has been fortunate to have generated a surplus the last five years through sound fiscal management. PATCH is investing the surplusses toward fund development, having hired fundraising staff for the first time in its 36-year history. We are also working with a financial consultant to create a five-year fundraising plan toward long-term stability.

The best business advice I have ever received: Do what you love and love what you do. I’ve seen people change their careers or specialties to do something they really love to do. It’s always the right decision. People put 110 percent behind something they love to do, and that kind of work ethic pays off.

How I am using social media differently from a year ago: PATCH finally got on the social media bandwagon last fall and started Facebook and Twitter. We have reached new clients this way.

One key to being an effective leader: Integrity. I will always be honest and do my best to do what I say I will. I like to think that sincerity is not a form of flattery, but an exhibition of a value.